Simon Property Group, Inc. · NYSE:SPG
Simon Property — Q1 2023 Earnings Presentation
43 slides from Simon Property's earnings presentation, May 2, 2023
Slide 1: 1Q 2023 Supplemental: Earnings Release & Supplemental Information
1Q 2023 SUPPLEMENTAL SIMON PROPERTY GROUP EARNINGS RELEASE & SUPPLEMENTAL INFORMATION UNAUDITED FIRST QUARTER
Slide 2: Table of Contents
TABLE OF CONTENTS EARNINGS RELEASE AND SUPPLEMENTAL INFORMATION FOR THE QUARTER ENDED MARCH 31, 2023 PAGE Earnings Release (1) 2 – 11 Overview The Company 12 Stock Information, Credit Ratings and Senior Unsecured Debt Covenants 13 Financial Data Selected Financial and Equity Information 14 Net Opera
Slide 3: Simon Reports First Quarter 2023 Results
EARNINGS RELEASE Contacts: Tom Ward 317-685-7330 Investors Nicole Kennon 704-804-1960 Media SIMON® REPORTS FIRST QUARTER 2023 RESULTS AND INCREASES FULL YEAR 2023 GUIDANCE AND RAISES QUARTERLY DIVIDEND INDIANAPOLIS, May 2, 2023 − Simon®, a real estate investment trust engaged in the ownership of pre
Slide 4: Development, Capital Markets and Balance Sheet Liquidity
EARNINGS RELEASE During the quarter, construction restarted on a 338,000 square foot upscale outlet located in Jenks (Tulsa), Oklahoma, projected to open in the fall of 2024. Simon owns 100% of this project. Construction continues on redevelopment and expansion projects at properties in North Americ
Slide 5: Conference Call, Dividend and 2023 Guidance
EARNINGS RELEASE Conference Call Simon will hold a conference call to discuss the quarterly financial results today from 5:00 p.m. to 6:00 p.m. Eastern Time, Tuesday, May 2, 2023. A live webcast of the conference call will be accessible in listen-only mode at investors.simon.com. An audio replay of
Slide 6: Forward-Looking Statements Risk Factors
EARNINGS RELEASE governmental restrictions on our business, financial condition, results of operations, cash flow and liquidity; changes in market rates of interest; the impact of our substantial indebtedness on our future operations, including covenants in the governing agreements that impose restr
Slide 7: Unaudited Consolidated Statements of Operations
EARNINGS RELEASE Simon Property Group, Inc. Unaudited Consolidated Statements of Operations (Dollars in thousands, except per share amounts) For the Three Months Ended March 31, 2023 2022 REVENUE: Lease income $1,248,185 $1,207,867 Management fees and other revenues 28,949 27,587 Other income 73,715
Slide 8: Unaudited Consolidated Balance Sheets
EARNINGS RELEASE Simon Property Group, Inc. Unaudited Consolidated Balance Sheets (Dollars in thousands, except share amounts) March 31, December 31, 2023 2022 ASSETS: Investment properties, at cost $38,505,497 $38,326,912 Less – accumulated depreciation 16,823,305 16,563,749 21,682,192 21,763,163 C
Slide 9: Unaudited Joint Venture Combined Statements of Operations
EARNINGS RELEASE Simon Property Group, Inc. Unaudited Joint Venture Combined Statements of Operations (Dollars in thousands) For the Three Months Ended March 31, 2023 2022 REVENUE: Lease income $ 735,048 $ 717,768 Other income 90,046 112,585 Total revenue 825,094 830,353 OPERATING EXPENSES: Property
Slide 10: Unaudited Joint Venture Combined Balance Sheets
EARNINGS RELEASE Simon Property Group, Inc. Unaudited Joint Venture Combined Balance Sheets (Dollars in thousands) March 31, December 31, 2023 2022 Assets: Investment properties, at cost $19,281,318 $19,256,108 Less – accumulated depreciation 8,615,876 8,490,990 10,665,442 10,765,118 Cash and cash e
Slide 11: Reconciliation of Non-GAAP Financial Measures
EARNINGS RELEASE Simon Property Group, Inc. Unaudited Reconciliation of Non-GAAP Financial Measures (C) (Amounts in thousands, except per share amounts) Reconciliation of Consolidated Net Income to FFO For the Three Months Ended March 31, 2023 2022 Consolidated Net Income (D) $ 519,255 $ 488,310 Adj
Slide 12: Footnotes to Unaudited Financial Information
EARNINGS RELEASE Simon Property Group, Inc. Footnotes to Unaudited Financial Information Notes: (A) Excess investment represents the unamortized difference of our investment over equity in the underlying net assets of the related partnerships and joint ventures shown therein. The Company generally a
Slide 13: Overview: The Company
OVERVIEW THE COMPANY Simon Property Group, Inc. (NYSE:SPG) is a self-administered and self-managed real estate investment trust (“REIT”). Simon Property Group, L.P., or the Operating Partnership, is our majority-owned partnership subsidiary that owns all of our real estate properties and other asset
Slide 14: Stock Information, Credit Ratings and Debt Covenants
OVERVIEW STOCK INFORMATION The Company’s common stock and one series of preferred stock are traded on the New York Stock Exchange under the following symbols: Common Stock SPG 8.375% Series J Cumulative Redeemable Preferred SPGPrJ CREDIT RATINGS Standard & Poor’s Corporate A- (Stable Outlook) Senior
Slide 15: Selected Financial and Equity Information
SELECTED FINANCIAL AND EQUITY INFORMATION (In thousands, except as noted) THREE MONTHS ENDED MARCH 31, 2023 2022 Financial Highlights Total Revenue – Consolidated Properties $ 1,350,849 $ 1,295,922 Consolidated Net Income $ 519,255 $ 488,310 Net Income Attributable to Common Stockholders $ 451,827 $
Slide 16: Net Operating Income Composition
NET OPERATING INCOME (NOI) COMPOSITION (1) For the Three Months Ended March 31, 2023 NOI BREAKDOWN U.S. PORTFOLIO NOI BY STATE(2) FL 18.5% TRG ALL OTHERS 8.0% 24.2% INTERNATIONAL (3) 8.6% THE MILLS 11.4% CA 13.9% IN 2.7% U.S. MALLS & PREMIUM OUTLETS 72.0% GA 3.3% MA 4.7% PA TX 4.7% 10.4% NJ 5.3% NY
Slide 17: Net Operating Income Overview (at Share)
NET OPERATING INCOME OVERVIEW (AT SHARE) (In thousands) FOR THE THREE MONTHS ENDED MARCH 31, 2023 2022 % GROWTH Domestic Property NOI (1) $1,283,830 $1,234,767 4.0% International Properties (2) 72,324 70,778 Portfolio NOI $1,356,154 $1,305,545 3.9% NOI from Other Platform Investments (3) (54,552) 25
Slide 18: Reconciliations of Non-GAAP Financial Measures: Net Income to NOI
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (In thousands, except as noted) RECONCILIATION OF NET INCOME TO NOI THREE MONTHS ENDED MARCH 31, 2023 2022 Reconciliation of NOI of consolidated entities: Consolidated Net Income $ 519,255 $ 488,310 Income and other tax benefit (13,453) (1,435) Interest
Slide 19: Reconciliation of FFO to Funds Available for Distribution
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (In thousands, except as noted) RECONCILIATION OF FFO OF THE OPERATING PARTNERSHIP TO FUNDS AVAILABLE FOR DISTRIBUTION (OUR SHARE) THREE MONTHS ENDED MARCH 31, 2023 FFO of the Operating Partnership $1,025,969 Non-cash impacts to FFO (1) 4,672 FFO of the
Slide 20: Lease Income, Other Income, Other Expense and Capitalized Interest
LEASE INCOME, OTHER INCOME, OTHER EXPENSE, INCOME FROM UNCONSOLIDATED ENTITIES, AND CAPITALIZED INTEREST (In thousands) THREE MONTHS ENDED MARCH 31, Consolidated Properties 2023 2022 Lease Income Fixed lease income (1) $ 1,013,164 $ 959,630 Variable lease income (2) 235,021 248,237 Total Lease Incom
Slide 21: Operating Information
OPERATING INFORMATION AS OF MARCH 31, AS OF MARCH 31, 2023 2022 2023 2022 U.S. Malls and Premium Outlets The Mills Total Number of Properties 162 164 Total Number of Properties 14 14 Total Square Footage of Properties (in millions) 136.7 138.4 Total Square Footage of Properties (in millions) 21.3 21
Slide 22: U.S. Malls and Premium Outlets Lease Expirations
U.S. MALLS AND PREMIUM OUTLETS LEASE EXPIRATIONS (1)(2) AVG. BASE PERCENTAGE OF NUMBER OF MINIMUM GROSS ANNUAL LEASES RENT PSF RENTAL YEAR EXPIRING SQUARE FEET AT 3/31/23 REVENUES (3) Inline Stores and Freestanding Month to Month Leases (4/1/23 – 12/31/23) 1,906 7,477,694 $55.36 7.6% 2023 1,226 3,93
Slide 23: U.S. Malls and Premium Outlets Top Tenants
U.S. MALLS AND PREMIUM OUTLETS TOP TENANTS Top Inline Store Tenants (sorted by percentage of total base minimum rent for U.S. properties) NUMBER SQUARE PERCENT OF PERCENT OF TOTAL OF FEET TOTAL SQ. FT. IN BASE MINIMUM RENT TENANT STORES (000’S) U.S. PROPERTIES FOR U.S. PROPERTIES The Gap, Inc. 286 3
Slide 24: Capital Expenditures
CAPITAL EXPENDITURES (1) (In thousands) UNCONSOLIDATED PROPERTIES CONSOLIDATED OUR PROPERTIES TOTAL SHARE New development projects $ 28,185 $ 6,113 $ 2,532 Redevelopment projects with incremental square footage and/or anchor replacement 82,387 30,500 15,267 Redevelopment projects with no incremental
Slide 25: Development Activity Summary
DEVELOPMENT ACTIVITY SUMMARY (1) As of March 31, 2023 (in thousands, except percent) EXPECTED OUR SHARE STABILIZED ACTUAL 2023 FORECASTED FORECASTED FORECASTED FORECASTED PLATFORM OF NET RATE OF INVESTMENT INVESTMENT INVESTMENT INVESTMENT INVESTMENT PROJECT TYPE INVESTMENT RETURN THRU Q1 2023 Q2 - Q
Slide 26: Common and Preferred Stock Information
COMMON AND PREFERRED STOCK INFORMATION CHANGES IN COMMON SHARE AND LIMITED PARTNERSHIP UNIT OWNERSHIP For the Period December 31, 2022 through March 31, 2023 LIMITED COMMON PARTNERSHIP SHARES (1) UNITS (2) Number Outstanding at December 31, 2022 326,953,791 47,302,958 First Quarter Activity Redempti
Slide 27: Credit Profile
CREDIT PROFILE(1) NET DEBT ($ BILLIONS) FIXED CHARGE COVERAGE (X) UNSECURED INTEREST COVERAGE (X) (2) Non-Recourse Mortgage Debt Unsecured Net Debt 35.0 32.2 6.9 30.1 30.9 30.2 30.3 7.0 6.0 30.0 18.8 5.3 19.4 5.0 5.8 5.8 5.6 16.6 18.8 19.1 4.8 6.0 5.3 5.0 4.6 25.0 4.2 5.0 4.0 20.0 4.0 15.0 3.0 3.0 1
Slide 28: Summary of Indebtedness
SUMMARY OF INDEBTEDNESS (1) As of March 31, 2023 (In thousands) WEIGHTED WEIGHTED WEIGHTED WEIGHTED OUR AVERAGE AVERAGE OUR AVERAGE AVERAGE TOTAL SHARE OF END OF PERIOD YEARS TO TOTAL SHARE OF END OF PERIOD YEARS TO INDEBTEDNESS INDEBTEDNESS INTEREST RATE MATURITY INDEBTEDNESS INDEBTEDNESS INTEREST
Slide 29: Total Debt Amortization and Maturities by Year (Our Share)
TOTAL DEBT AMORTIZATION AND MATURITIES BY YEAR (OUR SHARE) (1) As of March 31, 2023 (In thousands) UNSECURED CONSOLIDATED DEBT SECURED CONSOLIDATED DEBT UNCONSOLIDATED JOINT VENTURE DEBT TOTAL WEIGHTED WEIGHTED WEIGHTED WEIGHTED OUR SHARE AVERAGE OUR SHARE AVERAGE OUR SHARE AVERAGE OUR SHARE AVERAGE
Slide 30: Unsecured Debt Information
UNSECURED DEBT INFORMATION As of March 31, 2023 DEBT INFORMATION INDEBTEDNESS MATURITY INTEREST TOTAL DATE RATE(1) TYPE ($ IN 000’S) Unsecured Indebtedness: Simon Property Group, LP (Sr. Notes) 6/1/2023 2.75% Fixed 600,000 Simon Property Group, LP (Sr. Notes) 2/1/2024 3.75% Fixed 600,000 Simon Prope
Slide 31: Property and Debt Information: Malls
PROPERTY AND DEBT INFORMATION As of March 31, 2023 DEBT INFORMATION LEGAL TOTAL MATURITY INTEREST INDEBTEDNESS ($ in 000’S) PROPERTY NAME STATE CITY (CBSA) OWNERSHIP SQUARE FEET DATE RATE(1) TYPE TOTAL OUR SHARE Malls (2) 1. Apple Blossom Mall VA Winchester 49.1% 473,915 (2) 2. Auburn Mall MA Auburn
Slide 32: Property and Debt Information: Malls
PROPERTY AND DEBT INFORMATION As of March 31, 2023 DEBT INFORMATION LEGAL TOTAL MATURITY INTEREST INDEBTEDNESS ($ in 000’S) PROPERTY NAME STATE CITY (CBSA) OWNERSHIP SQUARE FEET DATE RATE(1) TYPE TOTAL OUR SHARE 40. Mall at Rockingham Park, The NH Salem (Boston) 28.2% 1,064,674 06/01/26 4.04% Fixed
Slide 33: Property and Debt Information: Malls
PROPERTY AND DEBT INFORMATION As of March 31, 2023 DEBT INFORMATION LEGAL TOTAL MATURITY INTEREST INDEBTEDNESS ($ in 000’S) PROPERTY NAME STATE CITY (CBSA) OWNERSHIP SQUARE FEET DATE RATE(1) TYPE TOTAL OUR SHARE (2) 80. Tacoma Mall WA Tacoma (Seattle) 100.0% 1,245,646 (2) 81. Tippecanoe Mall IN Lafa
Slide 34: Property and Debt Information: Premium Outlets
PROPERTY AND DEBT INFORMATION As of March 31, 2023 DEBT INFORMATION LEGAL TOTAL MATURITY INTEREST INDEBTEDNESS ($ in 000’S) PROPERTY NAME STATE CITY (CBSA) OWNERSHIP SQUARE FEET DATE RATE(1) TYPE TOTAL OUR SHARE Premium Outlets (2) 1. Albertville Premium Outlets MN Albertville (Minneapolis) 100.0% 3
Slide 35: Property and Debt Information: Premium Outlets
PROPERTY AND DEBT INFORMATION As of March 31, 2023 DEBT INFORMATION LEGAL TOTAL MATURITY INTEREST INDEBTEDNESS ($ in 000’S) PROPERTY NAME STATE CITY (CBSA) OWNERSHIP SQUARE FEET DATE RATE(1) TYPE TOTAL OUR SHARE (2) 38. North Bend Premium Outlets WA North Bend (Seattle) 100.0% 189,132 (2) 39. North
Slide 36: Property and Debt Information: The Mills
PROPERTY AND DEBT INFORMATION As of March 31, 2023 DEBT INFORMATION LEGAL TOTAL MATURITY INTEREST INDEBTEDNESS ($ in 000’S) PROPERTY NAME STATE CITY (CBSA) OWNERSHIP SQUARE FEET DATE RATE(1) TYPE TOTAL OUR SHARE The Mills 1. Arizona Mills AZ Tempe (Phoenix) 100.0% 1,223,928 09/01/26 3.80% Fixed 97,3
Slide 37: Property and Debt Information: International Properties
PROPERTY AND DEBT INFORMATION As of March 31, 2023 DEBT INFORMATION LEGAL TOTAL MATURITY INTEREST INDEBTEDNESS ($ in 000’S) PROPERTY NAME STATE CITY (CBSA) OWNERSHIP SQUARE FEET DATE RATE(1) TYPE TOTAL OUR SHARE International Properties AUSTRIA (13) 1. Parndorf Designer Outlet Phases 3 & 4 Vienna 90
Slide 38: Property and Debt Information: International Properties
PROPERTY AND DEBT INFORMATION As of March 31, 2023 DEBT INFORMATION LEGAL TOTAL MATURITY INTEREST INDEBTEDNESS ($ in 000’S) PROPERTY NAME STATE CITY (CBSA) OWNERSHIP SQUARE FEET DATE RATE(1) TYPE TOTAL OUR SHARE KOREA (16) 20. Busan Premium Outlets Busan 50.0% 360,200 11/23/25 2.90% Fixed 86,111 43,
Slide 39: Property and Debt Information: Taubman Realty Group
PROPERTY AND DEBT INFORMATION As of March 31, 2023 DEBT INFORMATION TRG TOTAL MATURITY INTEREST INDEBTEDNESS ($ in 000’S) PROPERTY NAME STATE CITY (CBSA) OWNERSHIP SQUARE FEET DATE RATE(1) TYPE TOTAL TRG SHARE Taubman Realty Group (2) 1. Beverly Center CA Los Angeles 100.0% 780,000 2. Cherry Creek S
Slide 40: Property and Debt Information Footnotes
PROPERTY AND DEBT INFORMATION As of March 31, 2023 FOOTNOTES: (1) Variable rate debt interest rates are based on the following base rates as of March 31, 2023: 1M LIBOR at 4.8577%; Overnight SOFR 4.87%; CME Term SOFR 4.8025%; 30 Day Average SOFR 4.63%; 1M EURIBOR at 2.915%; 3M EURIBOR at 3.038%; 6M
Slide 41: Non-GAAP Pro-Rata Financial Information
NON-GAAP PRO-RATA FINANCIAL INFORMATION The following pro-rata financial information is not, and is not intended to be, a presentation in accordance with GAAP. The non-GAAP pro-rata financial information aggregates our proportionate economic ownership of each asset in our property portfolio that we
Slide 42: Non-GAAP Pro-Rata Financial Information: Operations
NON-GAAP PRO-RATA FINANCIAL INFORMATION (In thousands) FOR THE THREE MONTHS ENDED FOR THE THREE MONTHS ENDED MARCH 31, 2023 MARCH 31, 2022 OUR OUR NONCONTROLLING SHARE OF NONCONTROLLING SHARE OF (1) (1) INTERESTS JOINT VENTURES INTERESTS JOINT VENTURES REVENUE: Lease income $(13,360) 341,236 $(11,36
Slide 43: Non-GAAP Pro-Rata Financial Information: Balance Sheet
NON-GAAP PRO-RATA FINANCIAL INFORMATION (In thousands) AS OF MARCH 31, 2023 AS OF MARCH 31, 2022 OUR OUR NONCONTROLLING SHARE OF NONCONTROLLING SHARE OF INTERESTS JOINT VENTURES INTERESTS JOINT VENTURES ASSETS: Investment properties, at cost $(533,908) $10,233,190 $(496,075) $10,373,170 Less – accum